It's all about Energy Folks

Real Estate Broker/Owner with Miller Homes Group

    The year was 1992 and a group of ultra liberal Senators and Congressman Lead by the pompous Barney Frank decided everyone deserved a home.  So that very year they mandated that Fannie Mae and Freddie Mac begin to loan money for housing to less qualified borrowers with higher debt to income ratios than ever before. Add to this both Fannie and Freddie agreed to take lower down payments from these less qualified borrowers. Lawrence B. Lindsey who was a member of the board of governors of the Federal Reserve stated in 1992 that "The regulatory issues in the 1990s will not be limited to safety and soundness, but will increasingly emphasize fairness: whether or not banks are fulfilling the needs of their communities."  Sounded like a quota system to those of us looking in from the outside.  Barney Frank wants to blame the conservatives on the hill for the failure of both lending institutions. However, he has spent untold number of years blocking all efforts to tighten lending requirements by both Republican law makers as well as the Bill Clinton administration. Clinton now blames these Democrats for contributing to the overall failure of the system. This has been written about extensively but never picked up by the main stream media. Frank even pushed hard to loosen requirements on two and three family homes even though the foreclosure percentage on these properties was already at two to five times the single family default rate. This has been documented as well and was recently reported on by Bill Sammon at Fox News.

Now you have people in homes they can barely or in some cases not afford. We have politicians campaigning and stating that home ownership is at all time high. Knowing the whole time it was a house of cards. The same politicians that took credit for the housing boom are now trying to blame everyone but themselves. Truly amazing isn't it? However, a lot of the people did take advantage of the much more lenient requirements to buy a home. People from all over this great country were making it work until one day energy costs begin to rise unchecked. By unchecked I mean completely out of control. Heating bills were tripling almost overnight. Gasoline was three to four times higher in less than a year. Not a single politician lifted a finger to help the American consumer, not one. We are rescuing oil producing nations from the evils of Tierney and they are latterly raping us in the market place. When we begin to look back at the increased foreclosure rate it runs parallel with the increase in the price of energy.  Interesting isn't it? People who were already strapped with a mortgage they could barely afford, now had energy costs that they couldn't afford. Then the business community began to strangle under the insane energy costs. Well if you're a business owner and you have to have energy or fuel to run your business, what gets cut?  That's right the worker!  Now the person who was already in trouble with they're mortgage and they're own energy problems now is unemployed.  Job loss accounts for most foreclosures in the market today and it was clear the energy crisis started the acceleration of the mortgage crisis as we see it today.

   Now we have issues with financial institutions collapsing because they did exactly what was "Mandated" by the government. Yes some of these financial institutions got greedy and took advantage of a situation while they could, but when all is is said and done they were simply following orders set forth by our government. They then realized that they were going to be the fall guys for Barney Frank and his cronies. So they pulled all the lending they could off of the market as fast as they could. Only the very best could get a loan. It was time to cover their own butts as best they could.  Thus, putting another nail in the economies coffin.

 You have the Automakers who for years had been struggling under oppressive union contracts and outdated product designs reeling from high fuel prices. They now have to deal with the tightest lending practices in history. Well it doesn't take a rocket scientist to figure out that an iceberg was about to hit this titanic. Having unforgiving union contracts, high fuel costs to consumers and no available lending capitol for the buying public created the "Perfect Storm" of business disasters.

Fuel consumption was dropping as prices were rising. No longer is the price of oil ruled by supply and demand. It is a traded commodity, which increases its volatility when it comes to pricing. Our economy is based and dependent on reasonable oil prices. The entire collapse of the auto industry was tied to SUV'S and Pick-up trucks. These two products helped pay for enormous Union contracts year after year. Then with out warning fuel goes up 400% in 15 months.

   Every problem we have with today's economy can be directly attributed to high energy costs and arrogant self serving government officials.

By: Terry Miller

Posted by

Terry Miller

Miller Homes Group

Tyler Apartment Locator


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Ralph Gorgoglione
Maui Life Homes / Metro Life Homes - Kihei, HI
Hawaii and California Real Estate (800) 591-6121

I TRULY believe there is MUCH more ties certain sections of our government to the oil industry that we do not know about, at least with our prior administration.

When you really look at the facts, it doesn't make any sense at all.  I was shocked when I learned about the ties that the Bush family has in the oil industry.  And there's much more I believe to be learned about our relationship with the Saudi government and royal family.

I hope the truth comes out in my lifetime.

Jun 01, 2009 02:46 AM #1
Sandra White
John L Scott Real Estate - Port Townsend, WA
Experienced Residential Resale Broker

Very interesting post with a lot of information.  I had read somewhere that Barney Frank's lover was an executive at Fannie Mae of Freddie Mac.  Have you read anything about that?  I sometimes wonder why we don't just give everyone a new car and big screen tv too! 

Jun 01, 2009 02:46 AM #2
South Austin Real Estate Blog
Sky Realty South Austin - Austin, TX

TERRY, BRAVO! BRAVO!.. and please add the exorbinant INTEREST RATES encouraged by the BIDEN team and Delaware based Credit Cards where folks who were paying interest on balances at a rate of 8% or maybe 9% see it go to 29.95% or higher overnight.  Now, 2 years later, that original purchase has been paid off in triplicate and the interest charges keep accuring and the bills keep coming.

Jun 01, 2009 02:49 AM #3
Norma Brandsberg
Marks Realty Co. Inc., Lynchburg, VA, 540-586-9496 - Forest, VA

Oil is a WORLD Market folks. Don't blame the old administration for the problems. If we won't pay the high oil prices, someone else overseas will. We only have control of a small percentage of world market oil. My memory is about 15%.

How do we figure that the Bush administration influenced the WORLD market with the US controlling that percentage? That is what the Democrats want you to believe to deflect criticism from their own backyard.

Under the Clinton administration, lending standards were also relaxed. McCain tried and failed to tighten the standards, but lacked control of congress.

Jun 01, 2009 02:54 AM #4
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Norma, I don't blame Bush. I blame them all for not looking at what we have and placing to much power in unstable regions around the world. No matter the price, we prefer oil from someone else because of all the trouble it takes to get it done here. This has been coming for years. They just pulled the trigger during Bush's term.

Jun 01, 2009 03:05 AM #5
Betty Knowles
Coldwell Banker Vanguard - - Springfield, MO
TeamKnowles REALTORS® - Springfield MO Real Estate

We are just sitting on our own oil and the environmentalists won't let us touch it. Drill Baby Drill!

Jun 01, 2009 03:06 AM #6
Terry Miller
Miller Homes Group - Tyler, TX
Miller Homes Group and Tyler Apartment Locator

Sandra- You are right on the Money.

Team Knowles:  YES!!!!!

Jun 01, 2009 03:07 AM #7
Don Rogers
Keller Williams Realty Chesterfield - O'Fallon, MO
Realtor, Broker, CDPE, GRI, OnullFallon MO & St Charles County MO homes


Do I detect a note of sarcasim in your post?  I especially like the point you made when you said   "Every problem we have with today's economy can be directly attributed to high energy costs and arrogant self serving government officials."

Truly you jest my friend, arrogant? self serving? I am thinking that ALL of them need to turn up their hearing aids!!!

Jun 01, 2009 03:10 AM #8
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